Tinubu Govt Tax Overhaul Plans Exemption for 95% Informal Sector of ₦25m or Less Earners


Presidential Committee Plans Tax Reform: Exemption for

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The Presidential Fiscal Policy and Tax Reforms Committee (PFPTRC) has unveiled ambitious plans to overhaul Nigeria’s tax system, announcing exemptions for 95% of the informal sector from all taxation. Taiwo Oyedele, Chairman of the Committee, made this announcement during a press briefing in Abuja following the conclusion of the close-out retreat of the PFPTRC.

The primary goal of these reforms is to alleviate the burden of multiple taxes on small businesses and individuals with low incomes. Oyedele emphasized that those earning ₦25 million or less annually would be exempt from paying all forms of taxes, including income and value-added tax (VAT). He stressed that the informal sector comprises hardworking individuals striving to earn a living legitimately, and burdening them with taxes hampers their economic growth.

The committee’s proposal for tax reforms is slated to be submitted to the National Assembly by the third quarter of the year. Oyedele highlighted that consultations with the private sector are ongoing, with internal approvals expected by the end of June. Additionally, executive orders and regulations, such as the new withholding tax regulation exempting small businesses, are awaiting implementation pending the Minister’s signature.

Furthermore, the committee aims to introduce a new National Tax Policy, Spending Policy, and Borrowing Policy before the year-end. Constitutional amendments are also on the agenda for 2025 and 2026 to align with the National Assembly’s timeline.

The reforms aim to reduce the burden of multiple taxation on small businesses and low-income individuals while improving tax collection efficiency. Despite the numerous taxes in place, Nigeria’s tax collection as a percentage of GDP remains low. The government intends to repeal several taxes, harmonize the remaining ones, and enhance tax collection mechanisms to address this issue.

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Godwin Okafor
Godwin Okaforhttps://naija247news.com
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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